Nasdaq jumps 2.5% as Nvidia dives 8% on Huang spy probe

> Wall Street rebounded hard Monday, with the Nasdaq Composite climbing 616 points, up 2.53%, now at 24,931.00. The S&P 500 added 109.17 points, or 1.48%, to reach 7,462.90, and the Dow Jones Industrial Average rose by 569.51 points, or 1.11%, now sitting at 51,855.24. Investors went bargain-hunting after last week's steep AI-driven selloff, though the calm didn't extend to Nvidia.

> Nvidia tumbled 8% at the opening bell after the AI chipmaker launched an internal investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort, raising questions about his future at the company. Shares later slid more than 4% in post-market trading, dropping to $178, after Huang acknowledged an intimate relationship with a business executive reportedly identified by US intelligence agencies as a Chinese spy. Bernstein kept its Outperform rating and a $4,000 price target, but warned the controversy could become a major distraction and expose Nvidia to tougher regulatory scrutiny.

> Other chip names wobbled: Intel, Marvell Technology and Qualcomm slipped between 0.5% and 1% premarket, and the Philadelphia Semiconductor Index closed Friday with its biggest weekly loss since March 2025. "The AI correction in equities could have much further to run," wrote Thomas Mathews, head of markets for Asia Pacific at Capital Economics.

> Citigroup strategists downgraded US equities to neutral from overweight, with Beata Manthey's team saying they want cleaner positioning and more stable sentiment around AI stocks, warning that key indexes such as the Nasdaq could reset lower into net-short territory. Alphabet shares rose more than 2% premarket on a Bloomberg News report that Google is introducing two new variations of its in-house tensor processing units; the stock is still down 9% this year.

> The dollar eased after posting its biggest gain in nearly six months on Friday, when robust US jobs data boosted bets on higher interest rates. Brent crude futures dropped 3.3% after President Donald Trump downplayed the likelihood of renewed strikes on Iran. HealthSpan Partners, an affiliate of nonprofit hospital system Bon Secours Mercy Health, sweetened its bid for Surgery Partners to about $6 billion, offering $25.00 per share in cash, up from $23.50, after a third party made an unsolicited competing proposal.

> Earnings are due Monday from KKR, up 3.7% premarket, and Constellation Energy, trading flat ahead of its results. It's been a strong season so far: 82.4% of the 335 S&P 500 companies that had reported as of Thursday beat estimates, according to LSEG Data and Analytics.